General Insurance Supervisory Levy Amendment Act 1991

Overview

The General Insurance Supervisory Levy Amendment Act 1991 was enacted by the Parliament of Australia to make amendments to the General Insurance Supervisory Levy Act 1989. The Act was introduced to address the need for adjustments to the statutory upper limit and the daily component of the general insurance levy, specifically for the financial year commencing on 1 July 1991. This legislative amendment aimed to ensure that the financial framework governing general insurance supervisory levies was up-to-date and reflective of contemporary economic conditions. The policy objective behind this amendment was to provide a more accurate and relevant levy structure that better aligns with the current fiscal landscape. The Act amends the definition of "statutory upper limit" in the Principal Act and adjusts the daily component of the general insurance levy from $11,000 to $13,000. These changes are effective for leviable days after 30 June 1991, ensuring that the modifications take into account the new financial year. Furthermore, any regulations related to the formula in the Principal Act that pertain to leviable days in the financial year commencing on 1 July 1991 are rendered ineffective to the extent they conflict with these amendments.

Scope and Application

The General Insurance Supervisory Levy Amendment Act 1991 amends the General Insurance Supervisory Levy Act 1989 and applies to the financial year commencing on 1 July 1991. The Act is applicable to entities that are subject to the general insurance supervisory levy as specified under the Principal Act. This includes insurance companies, reinsurance companies, and other entities involved in the general insurance industry within Australia. The amendments introduced by this Act modify the financial thresholds and components of the general insurance levy, specifically adjusting the statutory upper limit and the daily component of the levy. This adjustment is effective for leviable days after 30 June 1991, thus ensuring that the changes apply prospectively from the start of the 1991-1992 financial year. The amendments also clarify that any existing regulations pertaining to the formula in subsection 9(1) of the Principal Act will not affect leviable days in the financial year commencing on 1 July 1991.

Key Provisions

The General Insurance Supervisory Levy Amendment Act 1991 primarily serves to modify the General Insurance Supervisory Levy Act 1989, with specific adjustments to the financial thresholds and rates involved in the levy system. Section 3 of the Act amends the definition of "statutory upper limit" to include a new threshold for the financial year beginning on 1 July 1991, specifying $15,000 (subsection 6(1)(aa) of the Principal Act). Furthermore, Section 4 adjusts the daily component of the general insurance levy, increasing it from $11,000 to $13,000 (subsection 9(1) of the Principal Act). These changes are designed to reflect changes in the economic environment or insurance market conditions. The Act imposes obligations on insurance entities and the relevant regulatory authorities to ensure compliance with the updated levy rates. Entities subject to the levy must calculate their contributions based on the revised daily component, as set out in section 9 of the Principal Act as amended by section 4 of this Act. This requires a re-evaluation of the financial contributions they are required to make to the supervisory levy for the specified financial year. Additionally, any regulations made under the Principal Act must not affect the levy for days falling within the financial year starting on 1 July 1991, as stated in section 5(2) of this Act. Failure to comply with the new provisions could result in significant legal consequences. While the Act does not explicitly state penalties for non-compliance, breaches of the General Insurance Supervisory Levy Act 1989, as amended, could potentially lead to enforcement actions by the relevant regulatory bodies. These actions might include financial penalties or other sanctions deemed appropriate by the courts. It is important for entities to adhere to the updated levy requirements to avoid any legal repercussions that might arise from non-compliance with the Act's provisions.